🏆 Two Stocks For the Presidential Election (and Beyond)

Just when it seemed that markets had nothing to fear, thanks to a signed trade deal between the U.S. and China, as well as the Fed's repo operations to keep the financial system running smoothly, the coronavirus that started in China may be the next market fear.
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Good morning. Just when it seemed that markets had nothing to fear, thanks to a signed trade deal between the U.S. and China, as well as the Fed's repo operations to keep the financial system running smoothly, the coronavirus that started in China may be the next market fear.

At its best, it could simply dampen demand for travel and tourism around the world, but mostly in Asia. That was the case with outbreaks of avian and swine flus, and mostly had no impact on the U.S. economy. But for now, it seems to be giving stocks a reason to pause after its long rally upward. While these outbreaks can be serious, they don't last forever, and the market will likely get back to rallying soon.

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MARKETS
DOW 29,160.09 -0.09%
S&P 3,325.54 +0.11%
NASDAQ 9,402.48 +0.20%
*As of market close
Stocks recovered from losses to close slightly higher yesterday, following a busy day for earnings.
Oil dropped 2.0 percent, closing at $55.60 per barrel.
Gold rose 0.3 percent, moving to $1,562 per ounce.
Cryptocurrencies generally declined,with Bitcoin dropping 3.25% to $8,398.

Today's TOP TIPS
Two Stocks For the Presidential Election (and Beyond)
Astute traders are already starting to look to the November presidential elections. That's because any change in the White House could spell big changes on a number of tax and regulatory items.

Traders don't like uncertainty, and that will start to be reflected later in the year.

For the time being, however, a few companies stand out for the high likelihood that they'll continue to make investors money hand over fist no matter who occupies the oval office.

» FULL STORY

Insider Trading Reports: Phillips 66 Partners (PSXP)
Mark Haney, a director at Phillips 66 Partners (PSXP), recently added 1,640 shares, paying just over $62,000 to do so. The buy increased his stake by 5.5 percent.

He was joined by another director, Phillip Barrington, who also picked up 1,640 shares, paying three cents less per share on average. The buy increased his stake by 15.5 percent.

Insider data going back to 2013 shows that insiders have only been buyers of shares, never sellers.

» FULL STORY

Unusual Options Activity: Spotify Technology (SPOT)
January 2021 calls with a $270 strike price on Spotify Technology (SPOT) saw a five-fold increase in volume, going from 157 open contracts to over 825.

The bet, expiring in 358 days, would call for an 80 percent rally in shares from the current price around $148.

The trader paid about $1.05, or $105 per contract, so any rally in Spotify shares this year would likely lead to outsized returns on this trade.

» FULL STORY

IN OTHER NEWS
Sick of negative interest rates, wealthy investors are taking cash out of Swiss banks.
Indian startup bike rental firm Bounce raises $105 million.
Rhodium prices surge on demand for stricter emissions standards in vehicles.
A change in FICO ratings in the U.S. could lower credit scores.
The White House is working on a second round of tax cuts to boost growth.
Xerox goes hostile in its takeover bid for HP.
In a busy day for earnings, Texas Instruments sees revenue above market forecasts.
Procter & Gamble is hurt by weak diaper demand, but the overall forecast is raised.
American Airlines reports an earnings beat.
Traffic declined for Union Pacific, but cost cuts helped offset it.
Ford Motors reports a $2.2 billion pretax hit on pension obligations.
Comcast beats on earnings, but shares decline on a higher-than-expected drop in video customers.

S&P 500 MOVERS
TOP
CTXS 7.758%
NFLX 7.239%
AAL 5.417%
MTB 5.251%
LB 5.105%
BOTTOM
VFC 9.686%
RJF 6.17%
TRV 5.059%
DISCA 4.933%
EW 4.823%

Quote of the Day
We might see multiple 5% pullbacks in 2020. This is a market rally where I think we continue to get extended. And, I think sentiment as a result is getting a little excessive. Last year's returns were some of the best on record. You had this low-vol/high-return environment fueled by a lot of liquidity. I think some of that liquidity will be at least rolling off. ... That's going to create a more volatile environment.
- Joseph Zidle, Blackstone analyst, on why he foresees a number of modest 5 percent corrections in the market this year, even as it generally heads higher.

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